Gettting a fix on the latest deals

Interest rates were kept on hold again this week but fixed-rate mortgage deals are getting even cheaper.

With many economists forecasting a cut in interest rates in the next few months, some homebuyers will want to opt for a discounted rate. But others, keen to protect themselves from any sudden rate increases, will be keen to go for a fixed-rate.

Stroud & Swindon building society is offering a market-leading two-year fixed-rate at 3.75%. It's available to homebuyers and remortgagers, though there is a £494 lender's fee (£199 on application and £295 on completion), says mortgage broker Charcol.

There are early redemption penalties for two years only and you can borrow up to 95% of the property's value (85% for remortgages).

Charcol is offering an exclusive five-year deal funded by Bristol & West fixed at 4.45% until December 31, 2007. You can borrow up to 95%, there's a lender's fee of £399 plus a £49 booking fee, and penalties for the five years.

Fellow-broker Savills Private Finance also rates the Stroud & Swindon two-year deal, while over five years it highlights Coventry building society's deal fixed at 4.60%. It's available to buyers and remortgagers, but you have to stump up a deposit of at least 25%. There is a £295 fee. For those looking for a discounted rate, Savills and the Woolwich are offering two-year deals at 3.69%.Both available to buyers and remortgagers looking to borrow up to 95%, and both have penalties for the two years only. The Savills exclusive deal carries a £499 fee; the Woolwich is £395.

Bristol & West has a 3.70% two-year discount on similar terms though the fee is £299.